I

103D CONGRESS

2D SESSION H. R. 5042

To limit the accrual of pension benefits for Members of Congress to twelve

years of service, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 13, 1994

Mr. MILLER of Florida introduced the following bill; which was referred jointly

to the Committees on Post Office and Civil Service and House Administration

A BILL

To limit the accrual of pension benefits for Members of

Congress to twelve years of service, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Congressional Mem5 ber’s Pension Limitation Act of 1994’’.

6 SEC. 2. REFERENCE.

7 Whenever in this Act a section or other provision is

8 amended or repealed, such amendment or repeal shall be

9 considered to be made to that section or other provision

10 of title 5, United States Code.
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1 SEC. 3. MAXIMUM ALLOWABLE MEMBER SERVICE FOR PUR2 POSES OF RETIREMENT BENEFITS.

3 (a) DEFINITIONS.—

4 (1) FERS.—

5 (A) MAXIMUM ALLOWABLE MEMBER SERV6 ICE.—Section 8401 is amended—

7 (i) by striking out ‘‘and’’ at the end of

8 paragraph (31);

9 (ii) by striking out the period at the

10 end of paragraph (32) and inserting in lieu

11 thereof ‘‘; and’’; and

12 (iii) by adding at the end the follow13 ing:

14 ‘‘(33) the term ‘maximum allowable Member

15 service’ means service as a Member of 12 years.’’.

16 (B) AVERAGE PAY.—Section 8401(3) is

17 amended to read as follows:

18 ‘‘(3) the term ‘average pay’ means—

19 ‘‘(A) the largest annual rate resulting from

20 averaging—

21 ‘‘(i) in the case of an employee, an

22 employee’s rates of basic pay in effect over

23 any 3 consecutive years of service; or

24 ‘‘(ii) in the case of a Member, the

25 Member’s rates of basic pay in effect for
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1 the 3 years of Member service immediately

2 preceding retirement; or

3 ‘‘(B) in the case of an annuity under this

4 chapter based on service of less than 3 years,

5 over the total service;

6 with each rate weighted by the period it was in ef7 fect;’’.

8 (2) CSRS.—

9 (A) MAXIMUM ALLOWABLE MEMBER SERV10 ICE.—Section 8331 is amended—

11 (i) by striking out ‘‘and’’ at the end of

12 paragraph (25);

13 (ii) by striking out the period at the

14 end of paragraph (26) and inserting in lieu

15 thereof ‘‘; and’’; and

16 (iii) by adding at the end the follow17 ing:

18 ‘‘(27) the term ‘maximum allowable Member

19 service’ means service as a Member of 12 years.’’.

20 (B) AVERAGE PAY.—Section 8331(4) is

21 amended to read as follows:

22 ‘‘(3) ‘average pay’ means—

23 ‘‘(A) the largest annual rate resulting from

24 averaging—
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1 ‘‘(i) in the case of an employee, an

2 employee’s rates of basic pay in effect over

3 any 3 consecutive years of creditable serv4 ice; or

5 ‘‘(ii) in the case of a Member, the

6 Member’s rates of basic pay in effect for

7 the 3 years of Member service immediately

8 preceding retirement; or

9 ‘‘(B) in the case of an annuity under sub10 section (d) or (e)(1) of section 8341 of this title

11 based on service of less than 3 years, over the

12 total service;

13 with each rate weighted by the time it was in ef14 fect;’’.

15 (b) CREDITABLE SERVICE.—

16 (1) FERS.—

17 (A) IN GENERAL.—Section 8411(a) is

18 amended by adding at the end the following:

19 ‘‘(3) A Member may not be allowed credit for Member

20 service under this chapter that is greater than the maxi21 mum allowable Member service.’’.

22 (B) CONFORMING AMENDMENT.—Section

23 8411(b)(1) is amended by inserting before the

24 semicolon at the end thereof the following ‘‘,
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1 but not in excess of the maximum allowable

2 Member service’’.

3 (2) CSRS.—Section 8332(b) is amended in the

4 matter preceding paragraph (1) by inserting ‘‘Credit

5 may not be allowed for Member service under this

6 chapter that is the greater of the maximum allow7 able Member service or the Member service of the

8 Member determined as of the beginning of the 104th

9 Congress.’’ before ‘‘The service includes’’.

10 SEC. 4. IMMEDIATE RETIREMENT.

11 Section 8412 is amended as follows:

12 (1) Subsection (a) of such section is amended

13 by striking out ‘‘or Member’’.

14 (2) Subsection (b) of such section is amended

15 by striking out ‘‘or Member’’.

16 (3) Subsection (c) of such section is amended

17 by striking out ‘‘or Member’’.

18 (4) Subsection (f) of such section is amended to

19 read as follows:

20 ‘‘(f) A Member who is separated from the service

21 after becoming 62 years of age and completing 4 years

22 of service is entitled to an annuity.’’.

23 (5) Subsection (g) of such section is amended

24 by striking out ‘‘or Member’’ each place it occurs.
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1 SEC. 5. COMPUTATION OF ANNUITIES.

2 (a) FERS.—Section 8415 is amended as follows:

3 (1) By amending subsection (b) to read as fol4 lows:

5 ‘‘(b) The annuity of a Member, or former Member

6 with title to a Member annuity, retiring under this sub7 chapter is computed under subsection (a), except that if

8 the individual has had at least 4 years of service as a

9 Member, so much of the annuity as is computed with re10 spect to such service, not exceeding a total of the maxi11 mum allowable Member service, shall be computed by multiplying 17 12 ⁄10 percent of the individual’s average pay by

13 the years of service as a Member.’’.

14 (2) In subsection (c), by striking ‘‘or Member,

15 or combination thereof, so much of the annuity as

16 is computed with respect to either such type of serv17 ice (or combination thereof),’’ and inserting ‘‘, so

18 much of the annuity as is computed with respect to

19 such service,’’.

20 (3) In subsection (f), by striking out ‘‘or Mem21 ber’’ each place it appears.

22 (b) CSRS.—

23 (1) AGE.—The second sentence of section

24 8339(h) is amended by striking out ‘‘60 years’’ and

25 inserting in lieu thereof ‘‘62 years’’.
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1 (2) MAXIMUM.—Section 8339(c)(1) is amended

2 by inserting ‘‘, not to exceed the total service of such

3 Member or former Member as of the effective date

4 of the Member’s Pension Limitation Act of 1994 or

5 12 years (whichever is greater),’’ after ‘‘service as a

6 Member’’.

7 SEC. 6. DEDUCTIONS FROM PAY.

8 (a) FERS.—

9 (1) IN GENERAL.—Section 8422(a) is amend10 ed—

11 (A) in paragraph (1), by striking out

12 ‘‘The’’ and inserting in lieu thereof ‘‘Except as

13 provided in paragraph (3), the’’; and

14 (B) adding at the end thereof the follow15 ing:

16 ‘‘(3) Paragraphs (1) and (2) shall cease to apply with

17 respect to a Member when the service of the Member at18 tains the maximum allowable Member service.’’.

19 (2) GOVERNMENT CONTRIBUTIONS.—Section

20 8423(a)(1) is amended in the matter preceding sub21 paragraph (A) by inserting ‘‘paragraphs (1) and (2)

22 of’’ before ‘‘section 8422(a)’’.

23 (b) CSRS.—

24 (1) IN GENERAL.—Section 8334(a) is amend25 ed—
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1 (A) in paragraph (1), by striking out ‘‘The

2 employing agency’’ and inserting in lieu thereof

3 ‘‘Except as provided in paragraph (3), the em4 ploying agency’’; and

5 (B) adding at the end thereof the follow6 ing:

7 ‘‘(3) Paragraphs (1) and (2) shall cease to apply with

8 respect to a Member when the service of the Member at9 tains the maximum allowable Member service.’’.

10 (2) DEPOSITS.—Section 8334(c) is amended by

11 adding at the end the following: ‘‘This subsection

12 does not apply with respect to a Member for Mem13 ber service performed after January 1, 1995, in ex14 cess of the maximum allowable Member service of

15 that Member.’’.

16 SEC. 7. THRIFT SAVINGS PLAN.

17 (a) FERS.—

18 (1) LIMITATION ON GOVERNMENT CONTRIBU19 TIONS.—Section 8432(c) is amended—

20 (A) by striking out ‘‘At the time’’ in para21 graph (1)(A) and inserting in lieu thereof ‘‘Ex22 cept as provided in paragraph (4), at the time’’;

23 (B) by striking out ‘‘In addition to’’ in

24 paragraph (2)(A) and inserting in lieu thereof
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1 ‘‘Except as provided in paragraph (4), in addi2 tion to’’; and

3 (C) by adding at the end the following:

4 ‘‘(4) Paragraphs (1) and (2) shall cease to apply with

5 respect to a Member when the Member attains the maxi6 mum allowable Member service.’’.

7 (2) FORFEITURE.—Section 8432(g)(3) is

8 amended—

9 (A) by inserting ‘‘(A)’’ after ‘‘(3)’’;

10 (B) by striking out ‘‘Member or’’ each

11 place it appears; and

12 (C) by adding at the end the following:

13 ‘‘(B) Contributions made for the benefit of a Member

14 under subsection (c)(1) and all earnings attributable to

15 such contributions shall be forfeited if the Member sepa16 rates from Government employment before completing 4

17 years of civilian service.’’.

18 SEC. 8. EFFECTIVE DATE.

19 The amendments made by this Act shall apply with

20 respect to Members of Congress who are Members of Con21 gress beginning with the 104th Congress.

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